Automotive Heat Shield Market

Market Definition

The market encompasses a wide range of components and solutions designed to manage and reduce heat within various areas of a vehicle. 

This market includes single shell, double shell, and sandwich-type heat shields used across multiple vehicle categories such as passenger cars, light commercial vehicles, and heavy commercial vehicles. The report highlights key market drivers, major trends, regulatory frameworks, and the competitive landscape shaping the industry in the forecast period.

Automotive Heat Shield Market Overview

The global automotive heat shield market size was valued at USD 11.32 billion in 2024 and is projected to grow from USD 11.54 billion in 2025 to USD 13.59 billion by 2032, exhibiting a CAGR of 2.25% during the forecast period. 

This growth is driven by the increasing demand for effective thermal management across electric and conventional vehicles. The rise of electric vehicles is fueling the need for advanced heat shields to protect critical components such as batteries and motors.

Major companies operating in the automotive heat shield industry are Aspen Aerogels, Inc., SANWA PACKING INDUSTRY CO., LTD., Kokusan Parts Industry Co., Ltd., ElringKlinger AG, Morgan Advanced Materials plc, DuPont de Nemours, Inc., Tenneco Inc., Lydall, Inc., Alkegen, UGN, Inc., Zircotec, Dana Limited, Carcoustics, FUTABA INDUSTRIAL CO., LTD., and Autoneum.

The use of nano cooling films is gaining traction, offering enhanced thermal insulation without compromising visibility. This supports energy efficiency and aligns with the increasing focus on sustainability and advanced vehicle design, increasing the demand for high-performance, durable, and eco-friendly solutions.

Key Highlights:

1. The automotive heat shield market size was recorded at USD 11.32 billion in 2024.
2. The market is projected to grow at a CAGR of 2.25% from 2025 to 2032.
3. Asia Pacific held a market share of 35.03% in 2024, with a valuation of USD 3.97 billion.
4. The single shell segment garnered USD 4.35 billion in revenue in 2024.
5. The metallic segment is expected to reach USD 7.12 billion by 2032.
6. The passenger car segment is expected to reach USD 5.67 billion by 2032.
7. The exhaust system segment is expected to reach USD 3.82 billion by 2032.
8. North America is anticipated to grow at a CAGR of 2.72% during the forecast period.

Market Driver

Advanced Heat Dissipation for Autonomous Driving

The market is driven by the need for advanced heat dissipation in autonomous vehicles. Autonomous vehicles rely on electronic systems such as sensors, LiDAR, radar units, and central processors. These components generate heat which requires to be managed to maintain vehicle performance. 

Heat shields reduce thermal interference between electronics and high-temperature areas like engines and exhausts. This improves system stability and supports continuous operation. Reliable thermal control is essential for safe and efficient autonomous driving functions increasing the demand for heat shield solutions.

Market Challenge

Balancing Thermal Performance with Weight Reduction

The automotive heat shield market faces a major challenge in balancing thermal performance with weight reduction. Automakers face increasing pressure to reduce vehicle weight to improve fuel efficiency and comply with emission norms. 

Traditional metallic heat shields, while effective, can add significant mass to the vehicle. This creates an unbalance between thermal protection and overall efficiency. To address this, manufacturers are shifting toward advanced composite and non-metallic materials. 

These alternative materials offer comparable heat resistance and  significantly lighter, enabling better fuel economy and supporting electric vehicle range targets without compromising on safety or durability.

Market Trend

Emergence of Nano Cooling Film Technology

The market is witnessing a shift towards nano cooling film technology. These advanced materials offer enhanced thermal insulation by reflecting infrared radiation, helping reduce cabin temperatures without blocking visible light. 

It provides a thin, lightweight solution that improves energy efficiency in electric and hybrid vehicles where managing heat is critical to battery and system performance. The integration of Nano Cooling Film aligns with growing industry demand for sustainable, high-performance thermal management systems that do not compromise vehicle design or visibility.

• In April 2024, Hyundai Motor Company launched Nano Cooling Film, a transparent vehicle window tint that significantly improves interior cooling by blocking external heat and emitting internal radiant heat. This innovative film maintains high visibility while reducing cabin temperatures and energy consumption, with plans for future mass production.

Automotive Heat Shield Market Report Snapshot

Segmentation	Details
By Product	Single Shell, Double Shell, Sandwich
By Material	Metallic, Non-metallic
By Vehicle	Passenger Car, Light Commercial Vehicle, Heavy Commercial Vehicle
By Application	Exhaust System, Turbocharger, Under Bonnet, Engine Compartment, Under Chassis
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Product (Single Shell, Double Shell, Sandwich): The single shell segment earned USD 4.35 billion in 2024 due to its cost-effectiveness, simple design, and widespread use across conventional vehicle models.
• By Material (Metallic, Non-metallic): The metallic segment held 53.81% of the market in 2024, due to its superior durability, high thermal resistance, and compatibility with high-temperature automotive components.
• By Vehicle (Passenger Car, Light Commercial Vehicle, Heavy Commercial Vehicle): The passenger car segment is projected to reach USD 5.67 billion by 2032, owing to rising vehicle production, stricter emission norms, and increasing integration of heat shields for thermal efficiency.
• By Application (Exhaust System, Turbocharger, Under Bonnet, Engine Compartment, Under Chassis): The exhaust system segment is projected to reach USD 3.82 billion by 2032, owing to the growing demand for advanced thermal protection to meet emission standards and enhance component lifespan.

Automotive Heat Shield Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific automotive heat shield market share stood around 35.03% in 2024 in the global market, with a valuation of USD 3.97 billion. This dominance is due to the high vehicle production volumes, expanding automotive manufacturing hubs, and the presence of major OEMs in countries like China, India, Japan, and South Korea. 

Rising demand for passenger vehicles and supportive government policies on emission control are further contributing to the growth of the market. Additionally, increasing investments in electric vehicle development are driving demand for heat shield systems in the region.

• In February 2025, the Ministry of Heavy Industries (MHI) approved a capital subsidy of USD 96.13 million under Phase-II of the FAME India scheme. The subsidy aims to support the establishment of 7,432 Electric Vehicle Public Charging Stations (EVPCS) across India to increase the adoption of EVs across the country.

North America is poised to grow at a significant CAGR of 2.72% over the forecast period. The growth is due to the technological advancements and strict emission regulations in this region. The region benefits from a strong presence of premium vehicle manufacturers, high demand for light trucks and SUVs, and increased focus on vehicle safety and thermal management. 

The adoption of advanced engine technologies and a growing EV ecosystem are also driving the need for efficient heat shielding solutions across North American markets.

Regulatory Frameworks

• In the U.S., the regulatory framework for automotive heat shields is influenced by the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA).
• In Europe, automotive heat shields fall under the scope of EU Regulation (EC) No. 715/2007, which sets emission performance standards for new light-duty vehicles. Compliance with Euro 6 and Euro 7 standards requires thermal management solutions that ensure optimal function of exhaust after treatment systems.

Competitive Landscape

The key players in the automotive heat shield market are focusing on expanding their product portfolios by integrating lightweight materials and enhancing thermal resistance to meet evolving regulatory standards and performance requirements. Strategic collaborations with automakers and suppliers are common, enabling customized solutions aligned with specific vehicle platforms. 

Companies are investing in R&D to develop multi-layer and composite heat shields that improve efficiency while reducing weight. Many are adopting vertical integration strategies to streamline production and maintain cost control. 

Geographic expansion through new manufacturing facilities and technical centers in high-growth regions remains a priority to strengthen supply chains and improve responsiveness to local demand. Some players are also leveraging digital engineering tools to optimize design and accelerate product development cycles.

• In March 2023, Zircotec launched Primary Gunmetal Grey, an affordable ceramic coating that reduces exhaust surface temperatures by up to 25%. Designed for daily drivers, show cars, and classic vehicles, it balances thermal protection with aesthetic appeal. The coating offers durability with corrosion resistance, chemical stability, and strong adhesion, tested to OEM standards.

List of Key Companies in Automotive Heat Shield Market:

• Aspen Aerogels, Inc.
• SANWA PACKING INDUSTRY CO., LTD.
• Kokusan Parts Industry Co., Ltd.
• ElringKlinger AG
• Morgan Advanced Materials plc
• DuPont de Nemours, Inc.
• Tenneco Inc.
• Lydall, Inc.
• Alkegen
• UGN, Inc.
• Zircotec
• Dana Limited
• Carcoustics
• FUTABA INDUSTRIAL CO., LTD.
• Autoneum

Recent Developments (Product Launch)

• In March 2025, Henkel launched Bergquist Liqui Form TLF 6500 CGel-SF, a silicone-free thermal curable gel designed to protect advanced driver assistance system (ADAS) components from thermal degradation. The gel offers high thermal conductivity of 6.5 W/(m·K) to manage the increased heat generated by high-speed data processing in autonomous driving systems.